UAE | Housing & Property
'Good development', say agents
Real estate agents have welcomed the new rule that limits annual increases in rent in Dubai to seven per cent.
- By Scott Shuey, Chief Business Reporter and Daniel Bardsley, Staff Reporter
- Published: 23:36 May 3, 2009
Dubai: Real estate agents have welcomed the new rule that limits annual increases in rent in Dubai to seven per cent.
The agents said the regulation would be welcome news for tenants who have faced heavy increases in rent in recent years.
Prince Chanai, legal consultant for Al Masah International Real Estate, said the ruling was "a good development".
"This is good as the rate of increase [at the moment] is not commensurate with the salaries of people in Dubai," he said.
"I don't think it would be much of a problem to enforce. If it's the policy of the government, it's enforceable through the Dubai Rent Committee."
"If rents are going to be increased by more than this, then people have the right to object and the rule of law should prevail and in the court all issues can be adequately addressed," he said.
Ryan Mahoney, managing director of Better Homes, a Dubai-based real estate company, said the rent cap would be good for Dubai.
"Dubai needs this kind of short-term surgical approach to the rental control problem," he said. "Any more than the rents are now is too much."
"People can't afford to accommodate themselves, and businesses can't afford to accommodate themselves," he said.
Mahoney said the current high rents risked dampening businesses in Dubai as companies would look to move elsewhere, and that the decree was probably aimed at protecting the business environment.
"If the government takes steps to protect this city as a viable commercial hub, it would protect the real estate market," he said.
Mahoney said the government does need to be careful that rent caps are only applied as a short term-solution. He said long-term implementation of a rent cap could provide as a disincentive to developing more properties.
Mahoney has little sympathy for landlords.
"This is only going to affect existing landlords," he said. "The good times are already here. The landlords are in a fantastic position already."
Rafat Mattar from real estate agent Eqarat also welcomed the regulation announced yesterday, saying "definitely it's good".
"It's great. It is half of the old percentage increase. That is a good rule," he said.
Samra Usman Adres from Queen Style Real Estate described the new rule as "fantastic" and "very good".
"I know that tenants would be happy about this because everyone is suffering as the rents are very expensive," she said.
More from UAE Housing & Property
More from UAE
Community Reports
-
Mirror, mirror show me the way
Driver on Salam Street had so many boxes and fruits piled into car, he would not be able to view rear or right side mirrors
-
Parents should be more vigilant
Reader's picture highlights risk of negligence by caretakers
-
Warming up to ‘Mobilise the Earth' theme
Dubai school dedicates a whole week to celebrating Earth Day with can-collection drives, sapling plantation and painting competition among others
-
Drivers using mobiles put others' lives at risk
Speeding is dangerous for the driver and other motorists
Latest news
- Sharjah boy tops Indian board's class 12 exams
- Dubai number plates auction raises Dh27m
- Youngsters dance and raise cash for charity
- Dubai departments upgrade services
- Get yourself a free test for diabetes
- Ensuring a safety net for intellectual property
- Reader's issue addressed
- 5,552 illegals held in Dubai this year
- Man cleared because he took drugs in France
- Man charged with trafficking women
- Auditors to probe Mizin graft case
- Breaking down cultural barriers with photographs
- Abu Dhabi Crown Prince visits Islamic centre
- Police's secret source scheme reaps rewards
- Phone Sharjah transfusion centre now toll free
